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With Offline, American Eagle Outfitters Is the Latest Retailer to Embrace the Athleisure Surge

Offline's debut has perfect timing.
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Aerie

less than 3 min read

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

I’ve said for years that leggings count as pants. It took a months-long lockdown and the peak of Couch Culture for major retailers to agree.

The latest: American Eagle Outfitters launched Offline this week, an athleisure sub-collection within its Aerie brand.

  • The vibe: 250+ stretchy pieces for yoga, Pilates, or 100% planning to do a yoga video but going down a Best of Vine rabbit hole instead.
  • Offline is online and in Aerie stores, but the brand plans to open two brick and mortar stores later this year.

AEO is one of the first multibrand retailers to launch an athleisure label since quar became a word. Offline was conceptualized before the pandemic, too, but the line’s debut came at a key moment for its denim-first parent retailer:

  • AEO global brand president Chad Kessler told the WSJ that stretch denim is still selling, but added that the company is “pushing leggings and doubling down on sweats” for back to school.
  • Overall, NPD Group reports denim sales have declined by double digits over the last three months. Five denim-first brands have filed for bankruptcy since April, by WaPo’s tally.

Survival of the comfiest

Analysts already predicted athleisure would grow at twice the rate of overall apparel before the pandemic. But quarantine and resulting workwear declines fueled market share gains at Lululemon and cleared out warehouses at lesser-known labels.

So more retailers may follow AEO with a bigger push into the athleisure arena to address...

Changing tastes. Major employers aren’t reopening their offices until 2021, making tie-dye sweats the de facto uniform for at least a few more months. Purchasing habits already reflect the comfort preference: In May, 24% of respondents to a JPMorgan survey of U.S. consumers ranked athleisure in the top three categories where they’d spend stimulus checks.

Changing seasons: Unlike chunky cardigans, black leggings aren’t exclusively associated with PSL season. Meaning, retailers can store and sell athleisure for extended periods. With seasonal orders canceled and apparel sales soft overall, retailers will want reliable SKUs in their lineups.

My takeaway: Four months ago, apparel brands may have written off surges in sweatpants and leggings sales as a lockdown blip. Enduring demand for the category could convince other apparel retailers to create, or enhance, permanent athleisure sections.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.